it raised its dividend. even know the guidance was disappointing. the stock is now off to the races by almost 5%. all the major averages seeing green. the dow up 152 points at the end of the day. nasdaq and s&p also strong. fast money begins right now on cnbc. live from the nasdaq markets, i'm melissa lee. afterhours action. the apple conference call is kicking off right now. rise of the machines. it was the hack heard around the market after someone posted a fake tweet from the associated press. how can you protect yourself against fake flash crashes? and the friendly skies? the dreamliner finally helped

boeing investors sleep at night. we're tackling the post game analysis. let's get straight to the afterhours action in apple. shares resuming trade just about ten minutes ago. it is higher on the back of the earnings release. what is the latest here? >> well, i think expectations are finally low enough. call hasn't started yet. we're still listening to classical music. here's what we know so far. apple beat on the top line, $3.4 million. that's about $600 million over their range. guide anls a little disappointing, $34.5 billion. they're guiding to 36, 37% gross margins. but maybe the bigger story overall, returning cash. this did hike the dividend. they did increase the allot. . they did say that they're going to borrow money to help them manage cash in the future.

symbol icalically that's a fact. they've got $5 billion in cash. most of that overseas. the market seems to leak that afterhours today any way. we'll see where it goes after we hear some comments from tim cook. >> we'll check with you later on. peter, great to have you with us. >> thanks for having me. >> why do you think in melsers at least at this point are wills to look through the guidance for this quarter. >> i think that might be temporary. i think the surprise was the buyback coming on the earnings call, we expected it could come later. that guidance for eps, works out

to 650 to 703. that is worse than what we had expected. we think that that's really the story here. when they tell on the call that they added a few million phones inven toshy, we think that caused a little bit of an issue with investors. >> there's nothing going on on the revenue side. so here's a company with decline. you talk about the revenue pressure. yes, they're giving stuff back. i hear you saying this may be a temporary pop. there's nothing to expect until the june conference. this so me is a concern. there's really no wow factor, there's nothing left, other than this is a decent company. and that's not why we own apple. >> the issue is that the products for the remainder of the year, the 5 s, the ipad mini, which is probably the only product we're really excited about, and nothing else. and frankly, that's going to

cause an issue. the galaxy is going to take a meaningful share. so walk me through why we should like a stock that for one year has basically got a product that doesn't compete at the high end of the market. >> you brought up the margins again. i look at samsung margin about 29%. is that where apple's going over the next two, three years? >> it's certainly possible. the good news for apple is they do have that i tunes revenue and the cloud revenue to buffer that. but they're going to be forced to give up more over time. we don't see them breaching 30% anytime soon, but certainly a move down to 30% would be tough to swallow for the stock. >> it seems to your point this quarter has something for either side of the equation. you're in the sell the rally mode in this stock, if i'm not

mistaken. at what price will it get to where you'll have to reevaluate. if apple gets above a certain level, where to you reevaluate the stock? >> we constantly reevaluate every week. we look at data, and our job is clearly to predict the future. not an easy job. if the data support as different stock price or different outlook we will move where the data is. and right now the data is pointing low coe, so we're going to stick to our guns on that side. >> thank you for your time. peter has a whole rating on apple. in terms of the options market, apple's always a highly traded option. but how about today? >> we traded about 660,000. 25 of those traded as a block. so that's an institution that's willing to buy 250,000 shares of

it, but only around low coe levels. that's a significant decrease. retail flow which we can discern easier now has been pretty much overwhelmingly bullish. institutions cautionly optimistic. i'd line towards the institutions. >> the retail trade is very interesting because in terms of percentage owned by retail investors, apple in the tech sec t tor has a very high percentage. but keith, mccullough, would you fade this. >> i would do absolutely nothing. sitting right on my line, which is 426 per share. the sell side loves it at 700. they hate it at 400. >> peter brought it up is that

we are probably getting a new, a buyer here, a different institutional buyer than you've had in the past. somebody who cares about a 3% dividend. the revenue's probably going to be flachlt a different type of buyer, not going to be aggressivement i wouldn't chase this stock at all. i'd give it a day or two and see what happens. >> i see a couple issues, samsung gallon actiony s 4 is coming out in two days. i think this is a major competition. again the fablet. it's uncomfortable for me. but the screen is clearly where they're going. china mobile is not part of the plan. that should have been part of the plan. that would put more pressure on gross margin. i don't see any development there. >> would you be more excited if they came out with a bigger phone or a cheaper phone. >> i'd be happy with a cheaper phone. >> to me, it's meaningless, it's

all the same to me. but pete was talk being about the bigger phone being morphining full to him. >> the fablet. that's a ph. >> i think it gives something for the bulls to chew on. i think it gives something for the bears. and i wouldn't be surprised to be upgrades and downgrades. >> let's get to the trading. >> what apple means is that this market's going higher. let's get that on the table. we like consumption stocks, like starbucks and nike. >> that's assuming that people will be willing to look through q through guidance. >> i always assume the market knows something. and the reality is somebody knew this market was going to be better than horrific.

i want to be short commodity stocks. a big name we like is wolverine worldwide. >> even with the afterhours gain. if you look at apple, apple is now back to levels that it's seen since tuesday. so that's the reality of it. >> a small dispute with keith, not necessarily about the market but apple's correlation. apple has not been a driver of this market at all. if anything has been positive is the market has traded with apple's demise. the macro as it gets worse the ecb is back in the equation to cut rates. china pmi was weak. and the fed being weak. but boj, if the yen breaks a hundred, you're buying this. you should be buying riskier assets. >> how do you feel in your bear

outfit? >> a little snug. >> the s&p was up. >> today was the first day i was concerned about the bear being short the s&p 500. i've been short commodities, worked fantastic. s&p basically short line. 1552. so within 20 handles or so. but it's exactly what tim said. europe rallied so hard today on the idea that things are so bad that the only thing they can do now is try to stimulate the economy. so that's a little concerning being in the bear suit. i didn't do anything. i'll give it a couple day does mature. >>ity tal ran rates are at record lows. on a credit perspective, people are thinking things are better than i think they are. >> we talked about the pmi numbers are not great either. i thought to me one of the themes we had at the end of last year are what stocks are going to catch up and do better in

2013 and defense names are what we talked about. and look at the report out of lockheed-martin. they beat by almost 30 cents, revenues much better as well. now the stock opened on the high, sifted down the rest of the day. but i think the move is still in tact. and that's going to be a theme later when hash tag and i go head to head. >> hash tag smooth is what he's referring to. >> right now the stock is trading sharply higher. it's 426 in the afterhours. juniper also down. down 6% right now. also on low coe q2 guidance. and revenues came in, in line. and in earnings bright spot, broadcom beat up the top and the bother. it's almost 5%.

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what's the latest? >> it's an interesting start to the call. tim cook started off sounding more like a salesman than he typically does. he says, he mentioned the potential of new product category saying the team is hard at work on amazing hardware and software services it can't wait to unveil this fall. he said this is the same company that brought you the iphone and the ipad and there's plenty more magic coming. he went on to talk about use of cash. and the board decided a best investment was an investment in apple. some of these things cook has sort of said before. but this time he's selling it more. he also mentioned the drop in the stock.

it's been frustrating to all of us, echoing what he said at the share holding meeting earlier this year. he says he's going to focus on product which they can control, which the stock, they can't. they're wanting to attract investors who care about that kind of yield. >> and in terms of the guidances h refresh our memory. wasn't it too long ago that apple said we're not going to sandbag any more. and the guidance we give is going to be fairly ak rachlt so therefore, the guidance which is below consensus that they're issuing tonight is in their view more realistic than it was in quarters past. >> yeah. i think that's how we should read it. they did come in above their guidance range, but just barely. just by $600 million. they're talking about the current quarter when they talk about how their growth has

slowed. tim cook has acknowledged that. margins have come down. talking about some currency pressures. and tough comps. he said the sufficient co. i would expect they're being cautious expecting that same thing to happen again. >> apple shares holding onto their gain. let's take a check on shares of at&t. falling low coe. joining us from la, a mixed? >> earnings came in less than expected. but at&t's revenue is disappointing. another factor also pressuring the stock that at&t sold fewer

smartphones. but growth in tablets helped them add more wireless service than expected. wireless tends to surge due to the mobile internet. now at&t's broadband business did bet earn thter than expecte. it's bringing down its capital expenditures. that doesn't bode well for sisco, juniper and other equipment makers. at&t said dough spite slowing its capital expenditures, it won't be slowing down its broadband expansion. >> just to put it in context, it hit a 52-week high. >> it's had a nice run. i think it's close to a 5% dividend. to me, the wireless net adds, it

looks to me like it wasn't nearly as good as expected there. that gives me a little bit of caution. and the other side of it, they had some accelerated buybacks in the last quarter. they said they're going to slow things down. although i think it's fine valuation wise, the dividend is in play. >> the fake tweet reporting that there had been ha explosion at the white house that caused a mini flash crash in the stock market that took out more than $136 billion from the s&p. we have the executive vice president at cass that anlices security breeches. so many companies, including some of your clients, like wall street firms focus on putting up firewalls to make sure they're safe. but they don't think about what they allow in, like twit irand the cloud. >> that's right. there are a lot of issues here. one is that they are very good at putting up firewalls. the software that they build

internally to run their business is very complex and has a lot of weaknesses. they've gotten better at managing it lately but still not god enough. still, the cloud services like twitter, google. there are a lot of utilities that are used and they pose security risks. >> let's talk about twitter specifically. it seem the like more companies might use twitter as an instrument, a vehicle for disseminating information. yet, by doing that, you're essentially trusting the security practices of twitter. >> that's right. >> as opposed to your own company. so you're giving up control essentially. >> bhasically what the cloud is bringing, and twitter is an example of a cloud information provider. it's a utility for all of us to rely on for various purposes such as this. in the industry, the fact is that these cloud utilities are moving very fast. they're being developed all the

time. in fact, we always marchville at the fact that google, twitter, facebook they put software release the into play every 30 minutes. if they fail, they pull them back out. when they don't fail, sometimes you don't know what the risks are that are lurking within. and the industry hasn't caught up with keeping up with those type of risks. >> is there anything a company can do to keep itself from being hacked on twitter? or is that entirely up to twitter? >> some companies have put policies in place in order to kroil the way this information is, flows through the company. but really that is entirely in twitter's hands, as well as google or face bock, if you're using those information utilities as well. so, yeah. and we know that, you know, twitter is a complex beast. it's like some of us might dabble with app the on the iphone or something like that. building an app might be something like finishing your basement, something you might undertake yourself, building a

system like twitter is like making a jet airplane. it's constantly changing. and it's really up to these providers to control the security and the stability. so you don't get the fail whales all the time. >> you protect trading platforms specifically from e-rhonous data entry. if you had a program which was programmed to find explosion plus white house or whatever other target, nothing could prevent that. because that's just bad data that's coming in. >> that's right. and i think this points to a very interesting issue that's going on right now, which is the security and compliance industry is very good at protecting flows of dollars, right. so there's a lot of, there's a pci standard, payment card industry, there's standards to make sure that information regarding money amounts flows safely. but all other information that

knows, that might affect some of these trades that happen very quickly, you know, there's a lot of anlit ickes that computers do to get information out and trade on it. so all data is becoming currency. somebody traded on that up and down. somebody made money. somebody lost money. so that data, information is money. and the standards about security and stability of data transfer are not up po spek yet. >> now they have the blessing of the fcc, this might be becoming a more common experience. >> it's scary to think you're trading on twitter. it's scary to think that the a and p is putting out information on twitter and no place else. >> that's scary stuff. and that's why i think at least for people who are active

traders, this issing is you never do. >> i think it's a great opportunity. anytime a machine has to do something, you can capitalize on that minute yourself. number one, you don't trade like a machine. number two, find somebody that knows what the heck they're doing. number two, whine about it. but i think you can take minutes, and the swing was about 1%. if you drill down on she components like the procter & gamble. that was a move about 2.4% top to bottom. so the chances of being stopped out on these individual names are p pretty low for the average investor, however, with the al go, which is the momentum. >> maybe the bigger problem is the algoes. you've maid that decision. these are new information

highways. and i think it's better than the alternative, which is having some hedge fund float a rumor out there that canthis market, on a day like today,ly get stopped out at the absolute bottom. it's a market order. and you're going to get killed. so don't put stops in to protect yourself against this. >> have some tail risk. have a little built, a few bits of premium in your portfolio that protects you, because you can replenish that over and over again. >> in general, when was the last time something like this happened? the flash crash, may of 2010, right? so that was a while ago. and in those instances stock losses were disastrous. a lot of people lost their shirts. but in general, it's a good tool. >> it's pushing towards, stops were, obviously they worked a lot better ten years ago than they do now.

options work. and if you're looking for a stock, obviously it's not going to cure this specifically. but look at the move sim and techs had. we're talking about a sfok that didn't trade for five or six years, now maybe there's something to the security names. >> we're keeping an eye on optiar can igh cnbc's halftime report we have a guest host. china and the art of short selling. that is tomorrow on the half. more fast money, straight ahead. tdd# 1-800-345-2550 you should've seen me today.

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we have some breaking news. we've got some calls and tweets here at cnbc from some charles swab kuls mirs saying they couldn't log onto their account. they said that yes, they are experiencing some technical issues with their website which has been preventing customering have being able to log onto their account. we do not know the cause of that technica issue. and there is no clarity at this stage as to how many customers have been affected but this is the story that we know so far. and if we hear anything more we will bring it to you. now we return after our session. let's check in at the market flash desk. >> we have two names we're watching here. let's start with yum brands. comes in a little light on the top line. the kfc parent did report a 20%

drop in first quarter sales. the impact of chicken supply issue, now bird flu worries, but that drop was in line with what they were expecting. check out pa nar ra, disappoint on the bottom line, top line. stock down more than 6% right now. back to you. >> thank you very much. let's tackle yum first. because obviously when they reported march sales for china specifically, people were bracing themselves for the worse. >> bank of america had a note out that said time to be chicken. it was late in the game to be making this call. they said sentiment against them on the avian bird flu have improved. the china comps are something they invested in heavily. this is another one of those stocks that become cult status. it got too far ahead of itself. $75 is the right call on this

stock. that's 12 to 15% on the low side of the china's growth. >> and panera? >> they're redoing their menu. if you want to play the consumer, which i don't at this point, but to keith, what he was doing earlier this day, it might be something you want to do. >> let's take a look on the fast line. we should note apple is off of its highs. it is now trading at about 419 or so. what to you make of the move and whether or not people were positioning themselves for it. >> i think institution wise they were positioning for upside. and i determine that by looking at the strikes that are trading and whether or not they're trading under institutional sized volume. in other words, when i see fives, tens, 20 lots, which is what we saw at the mono strikes,

that's not what i care about. i wanted to see the 200, 300, 500 stuff. and that's whyque thought we could see about 430 in the afterhours and/or into tomorrow's session. >> and in terms of the supplier, we are seeing the move in apple fade. and there's some questions about the guidance that they have given for the current quarter. do you think we're going to see the same as we have in the past with apple? >> i think the ecosystem is a -- i better read through what apple's going to do. i think they're all playing a

part of this, but i think they also play a part with htc and samsung. the six page ad for samsung's products in the wall street journal today was something to behold. beautiful, full color, six page spread. that's one of the things, i think, that cook and these guys have really missed sh that the cool factor with samsung, and as your hole desk has commented, the larger form factor. i really think apple's missing it if they don't do that. >> thank you for your time. again, apple shares are up less than 3% in the afterhours session. the conference call is 34 minutes in. big movers of the session. pop for bank of america. >> great new home sales data. this is a back door way to play that. again, housing up huge. bank of america up huge.

i like it. >> earning, these guys think they see light at the end of the tunnel in thermo coal. i'm not sure what you're getting. >> pop for lien ar. >> to me it's a little bit overdone. if you're in it and lucky enough to get that 7% take some off. >> this quarter wasn't that bad. slight revenue miss, maybe another day of a little bit of pain here. but i think on a valuation. >> got a pop for coach, up 10%. >> so eps of 84 cents beat the street estimate of 80 cents. you know, this thing is growing. about 7% and margins are

remaining consistent. even though i'm a bear, generally, i think this stock is actually still attractive. >> and we've got a pop for beakers. backstreet is back. members of the larger than life '90s band who are now in their 30s and 40s accepted a star on the hollywood walk of fame. some names that are not on there, clint eastwood, julia roberts. >> i shouldn't have to pick a favorite. they're an ensemble. i don't want to separate them. >> we love them. >> that's beautiful. >> in their own different ways. >> coming up next, tracking all the afterhours movers. those stocks cleared for takeoff. something to fight about, much

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welcome back to fast money. we're live at the nasdaq markets. let's get another it flash on a mover. >> tech out amgen. the bottom line, big sales on the osteoporosis drug. they're still expecting 17.8 billion. hit a 52-week high today, up some 30%. back to you. >> this is a stock that has been on a tear. it is just a buck off of its all time high. >> i think it made an all time high today. it's a name we've talked about before. and if you look at it, the same

thing here. i think it's much bigger story. these bioteches are on fire. >> pair of airline stocks beating first quarter earnings, with delta saying it had its best first quarter in more than a decade. what do you see in the options? >> the options markets are reasonably optimistic for the airlines. let's take a look at a couple things, the consolidation has reduced the seat capacity. the issue here is that all these things look cheap on an earnings bas basis. you know, it should be trading at the low coe valuation ranges.

>> i know we got to go. but before we went to break there was that commercial about you. >> were you scared? >> it was kind of creepy. >> it's all good. >> what are you going to do? >> i can't say. it's something that i have never done before. >> i'm doing it on the show on monday. >> we love firsts here. >> i'm sure you do. coming up next, a look at some unusual activity affecting one company. a high-flying stock which could be loses high altitude buyers. boeing, coming up next. [ laughter ] ♪ [ female announcer ] each one of us is our own boss.

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welcome back to fast money. on the apple earnings call, apple taking a bit of a breather afterhours. now up 1.5%. could be that tim cook was asked again about the product cycle. and he said i don't want to be more specific about this but we've got some great stuff

coming in the fall. nothing about the summer for people who were hoping for an announcement in june or july. >> we are seeing the stock down. now it's only up by .4%. it is going to be a push back. >> now that brings you into the holiday season. and i know a lot of people were talking about perhaps an apple tv at that point. that's what the stock's been about is that product cycle. and without that, you're going to have a completely different investor. >> it is surreal. there's no support to the prior closing low. so deal with it. >> you said that the direction of apple determines the direction of s&p. >> that's a good call by you.

>> it could be bullish. if you look at it, it's 20% of the tech sec tosh etf. if this thing fades like a flower, it's not a good thing. >> meantime, shares of boeing gaining altitude over the past three months, but the stock could soon come under some pressure. the government looking into the safety testing of 787 batteries. guys bullish. tim is bearish. make your case. bull, guy, take it off. >> tim is going to try to seduce the audience at home with those steely blue eyes of his. don't let him. the stock has traded great since. lockheed-martin, look at their earnings, boeing and lockheed are not as dissimilar as you might think. i think boeing is breaking out of a range that we've seen for the last three, three and a half years. and i think all this talk of

sequester has been priced in the stock. it is a bit of a coiled spring. but that's why i'm taking the boeing case. >> aren't all springs coiled? >> no. >> i'll talk. >> any way, go. >> the recovery from a bear event is not a bull event. don't be confused now that we know that the 787 battery is okay. look, in the case of ba, the pattern is very full. the valuation is full. at 17 times with earnings coming out, this 787 battery issue is probably a drag of 6 or $700,000 in terms of cash flow. this is a company that does not deserve a premium valuation until they can prove they can deliver. this is not ha superior plane, relative to et cetera

competition. my bell hasn't rung yet. >> it's shared time. he is filibustering. >> if we have fast money volleyball, you'd be goose wearing the shirt because you don't want to take the shirt off. >> you're the guy talking this morning about an oiled up -- talking about my steely blue eyes. >> stop, stop, stop. >> street fight. >> all right. who won? >> i'm going to go with guy on this one. i think this is a longer term play, think. what we're going to see is a lot of midsize aircraft demand, probably over the next five years. that includes airbus and boeing. so i think the longer term case is pretty strong. >> i think long and strong boeing, go rangers. >> that's a nice softener to the

bitter pill here. >> he should have said go mets. >> tim had my when he brought the top gun reference in there. i didn't listen to the rest of the street fight. i was mesmerized that he could bring that into a street fight. >> the pattern's full. >> at least on the devg it looks like guy has won this debate. tweet us at cnbc fast money using #bull or #bear. some option traders think the runway may be getting long. what did you sigh? >> if you took a look at the options in procter & gamble you would have seen an overwhelming number of calls trading today. most of those were in the money. the mostle active option strike that was not related to the dividend were the may 75 puts. and what's interesting here is

that procter & gamble is -- paying about 40 cents might be banking that it runs back to about that level. >> by the way, apple shares are now trading at around 407 and change. so not much higher than where it closed. coming up, the tweets. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

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flirting with the negative, it had just now turned back into the negative. 405.89 is the latest trade there. >> this is big. tim cook was just responding to a question about the prospect of a larger screen iphone. and for the first time that i've heard, he framed it differently than he has in the past. he said yes, some customers like larger screen sizes. some like what we've got which we believe is better. he said that competitors have

made tradeoffs in order to make those larger screens. and he said we won't make a larger screen iphone as long as those tradeoffs exist. in the past they have also framed it in the size of the phone, he didn't frame it in terms of ergonomics. >> what would the tradeoffs be? what are they giving up? they would be gaining customers, right? if they offered both, they would have both customers. >> i think the tradeoffs he was talking about were technology tradeoffs, once you make the screen larger it can be harder to control like color quality, white balance, also there's the issue of app compatibility. how do you get the apps from the smaller phones to look the right way on larger phones. those are things that apple's

been working on technology to automatically resize. >> what would your move in apple be tomorrow? >> my move in apple would be stay away from it. i wouldn't short it because it's down so much. you've got to give this thing a couple days to digest this. it doesn't look good in the afterhours. >> coming up next, who won our street fight? ♪

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we asked you to weigh in on who won the street fight, and it is a tie. 2-2. >> on valuation i like cat. >> long the wolverine. >> staying short, specialty metals. rti. >> i think you stay short. especially with apple. if it doesn't go down, i'll eat my shoe, maybe here live. >> thank you so much for

watching, see you